BCM News Wire Issue 437

1. BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 437 – July 29, 2016
BCM NewsWire provides short summaries of news collected from around the world. Each
article is kept to a maximum of 150 words for brevity, but click on the link next to
“Source” to read the full article.
NEWS HIGHLIGHTS:
Business:
• Thiess secures contract for Rio Tinto's $5.4 bn Oyu Tolgoi project
• Erdenet production exceeds H1 target
• Korea to build large-scale solar power plant
• MMC settles $180 mn loan
• Wolf Petroleum raises $745,500 from share issuance
• Shangri-La Mall opens
• Sky Hypermarket signs on meat producers for fresh meat at E-mart
• SPAR International announces expansion into Mongolia
• BITComputer to provide telemedicine system to Mongolia
• Mongolia-Japan JV to buy up herders’ animal waste for cosmetics
production
Economy:
• Mongol Bank: FX Auctions, 1-Week Bills
• Budget deficit widens with dip in commodity prices
• Mongolia strengthens ties with South Korea, a credit positive
• China and Mongolia to build “wide-gauge” railway at Shivee Khuren
• Smoke from Siberia’s wildfire covers Mongolia
• U.S. helping Mongolians to meet winter emergency challenge
• Palaeontologists repatriate dinosaur bones with laser beam technology
• Korea to fund mobile healthcare units
• JICA launches project for Mongolia’s disabled
• Nomads of Mongolia launch campaign to raise money for alternative-energy
tech
• Mongolian judges learn about American judicial system
• Two buildings flagged for demolition in UB
• Railway accident occurs at Darkhan
• Korean wave gets boost in Mongolia
• University graduates suffer from lack of employment opportunities

2. • Bankhar are back on the beat as Mongolian herders
• Addressing the world - How to find anywhere on the planet
• Hot money fleeing negative yields shelters in Mongolia
Politics:
• Who is Mongolia’s new prime minister?
• Mongolian President clashes with new prime minister over cabinet posts
• MP Nomtoibayar appointed to 2 Cabinet seats
• Cabinet meetings moved to Wednesday
• Premier’s spokesperson appointed
• State secretary for Parliament appointed
• Enkhbayar ignores anti-corruption authority’s requests for interviews, say
authorities
• MPP to tackle UB’s urban development challenges
• Ulaanbaatar to host North-East Asian Mayors Forum
• Xylograph added as UNESCO Memory of the World
BCM Updates:
• Announcements
• Advocacy Notes
• Working Groups News
• Member-to-Member Special Offers & Benefits
• Websites Update - Presentations, Mongolia Reports, Interviews
Economic Indicators:
• Inflation
• Central Bank Policy Rate
• Currency Rates
*Click on titles above to link to articles.
SPONSORS
Khan Bank Wagner Asia Automotive

3. Mongolian Business Database International SOS
BUSINESS
THIESS SECURES CONTRACT FOR RIO TINTO'S $5.4 BN OYU TOLGOI PROJECT
The Cimic Group’s mining services arm Thiess has secured a USD130m contract for
Rio Tinto Group’s USD5.4bn Oyu Tolgoi copper-gold mine. The contract will be
carried out in joint venture with local contractor Khishig Arvin, and is for an
underground decline for the copper and gold project. Thiess’ work is set to start
this month and scheduled for completion in 2020. “This project is key to unlocking
Oyu Tolgoi’s potential and is a great addition to Thiess’ diverse mining portfolio,”
said Cimic Executive Chairman and Chief Executive Officer Marcelino Fernández
Verdes.
As part of the contract, the company’s responsibilities will include construction of
a box cut and development of twin declines, incorporating a service and conveyor
tunnel. Once underground production is fully ramped-up in 2027, Oyu Tolgoi is
expected to produce more than 500,000 tons of copper per annum.
Source: Mining-Technology.com
ERDENET PRODUCTION EXCEEDS H1 TARGET
Erdenet Mining Corp. produced above its target for the first half of 2016 as it
grabbed for greater earnings while selling at below the global market average.
Erdenet earned MNT32 billion after taxes as it ramped up production to make up
for a price fall for the red metal. Erdenet sold its copper at 4,023 a ton compared
with the global market average of between USD4,300 and USD4,500.
Additionally, Erdenet Mining Corp.’s board of directors have appointed B.
Shinebaatar as the copper miner’s first deputy director. Shinebaatar is a former
state secretary for the former Ministry of Economic Development and has sat on
the Erdenet board.
Source: UB Post, Udriin Sonin
KOREA TO BUILD LARGE-SCALE SOLAR POWER PLANT
Mongolian solar energy company Moshea Eco Energy and Idea Bridge, a Korean
asset management firm, finalized a contract earlier this week to build a 50
megawatt solar power plant on 100 hectare of land near the new international
airport being built at the Khushig valley, some 31 kilometer from Ulaanbaatar. The
new plant will generate approximately 5 percent of Mongolia’s total electricity
production, and will be providing power for the new airport. The first phase (15
megawatts) of the construction is expected to begin in September and finish by

4. May 2017, whereas the second (15 megawatts) and third (20 megawatts) phases
will be completed by the end of 2018 and early 2021, respectively.
The USD100 million cost of the endeavor will be funded by Idea Bridge, while Han
Jae-won, chief manager at Yeongwol Energy Station, will serve as the overall
project manager (PM) of the entire construction process.
Source: The Korea Bizwire
MMC SETTLES $180 MN LOAN
Mongolian Mining Corp. (MMC) has settled its USD180 million debt with
international financial institutions, including the European Bank for Reconstruction
and Development, the Hong Kong-listed miner said in a 25 July statement. MMC’s
mining unit for the Ukhaa Khudag coal mine has a discharge and release of its debt
to EBRD, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.
and Deutsche Investitionsund Entwicklungsgesellschaft mbH, opened in August
2010. The statement did not explain the specifics of the settlement or whether a
sum was paid.
Source: Mongolian Mining Corp.
WOLF PETROLEUM RAISES $745,500 FROM SHARE ISSUANCE
Wolf Petroleum Ltd. has launched the first two phases of its share issuance, raising
USD764,500. Wolf has issued a total of 76,450,000 to the SAM Group and is
currently in preparations for a third phase to sell up to 242,907,013 at USD0.01 a
share. The third phase will include options exercisable at USD0.05 on or before 31
July 2018 to the SAM Group.
A general meeting where Wolf will seek approval for this this phase is expected
next September 2016.
Source: Wolf Petroleum Ltd.
SHANGRI-LA MALL OPENS
The Shangri-La Mall shopping center opened its doors on 22 July in central
Ulaanbaatar. The 27,000 hectare space houses an IMAX theater, fitness center with
a spa and swimming pol, and 185 adjacent residential apartments.
Source: Unuudur
SKY HYPERMARKET SIGNS ON MEAT PRODUCERS FOR FRESH MEAT AT E-MART
The Mongolian entity opening the Korean grocery chain E-mart in Ulaanbaatar has
signed on local suppliers to provide fresh meat and dairy for the franchise here. E-
mart opened its first location in Ulaanbaatar on 28 July at the Sky Mall Sky
Hypermarket has contracts with both Mongolian Development Solution LLC and
Khishigten Nuudelchin LLC for the meat and dairy. Also on board is the recently
launched meat processor Bayandelger Khuns LLC, which is Mongolia’s first factory
to process year-round.
Source:Udriin Sonin

5. SPAR INTERNATIONAL ANNOUNCES EXPANSION INTO MONGOLIA
The Dutch food retail chain SPAR has announced a new partnership with
conglomerate Max Group LLC to open its first stores in Mongolia. The partnership
with the operator of the Max Food Supermarkets chain will see up to 60 SPAR-
branded multi-format stores in Mongolia between 2017 and 2020. The Dutch Prime
Minister, Mark Rutte took part in the signing for the deal while in Ulaanbaatar for
the Asia-Europe Meeting summit in July. The Netherlands-based SPAR International
reported global retail sales in 2015 of EUR33 billion (USD36.6 billion) from over
12,100 stores across four continents. Mongolia brings to 43 the number of countries
where SPAR has operations globally.
“It is greatly encouraging to see a company like SPAR, which started as a
partnership of Dutch retailers and wholesalers more than 80 years ago, helping
bring retail best practice to the Mongolian marketplace,” said Rutte.
Source: Spar International
BITCOMPUTER TO PROVIDE TELEMEDICINE SYSTEM TO MONGOLIA
BIT Computer has received a 2 billion won (USD1.76 million) order to supply
telemedicine system from the Mongolian government, it announced on 19 July. The
government is building a new National Diagnostic and Treatment Center in its
capital Ulaanbaatar and aims to provide remote medical treatment in cooperation
with 12 medical facilities nearby. The company already has won the contract for
information system for the state hospital.
BIT Computer has exported medical information solutions and remote medical
solutions to 11 countries, including Thailand, Cambodia and Philippines.
Source: Korea Herald
MONGOLIA-JAPAN JV TO BUY UP HERDERS’ ANIMAL WASTE FOR COSMETICS
PRODUCTION
A Mongolia-Japan joint venture will use leftovers from herders animal rearing to
produce cosmetics destined for the Japanese market. The 50-50 partnerships will
collect the placenta from animals births for up to MNT30,000 each from Mongolia’s
21 provinces for consumption at a facility scheduled to launch in 2018.
Source: Udriin Sonin
ECONOMY
MONGOL BANK: FX AUCTIONS, 1-WEEK BILLS
The Bank of Mongolia on 28 July sold USD28.2 million and CN37.5 million at
currency auctions for closing rates of MNT2,071 and MNT311.50, respectively. That
day, it accepted commercial banks’ tugrik swap agreement offers for an equivalent
of USD64.5 million. On 27 July, it issued MNT333 billion in one-week bills at a
weighted interest of 10.5 percent.
Source: Bank of Mongolia
BUDGET DEFICIT WIDENS WITH DIP IN COMMODITY PRICES

6. Mongolia’s budget deficit doubled in the first half of the year as low commodity
prices continued to drag down the economy. The budget deficit widened to
MNT1.12 trillion (MNT572 million) in the first six months of 2016 from a deficit of
MNT535 billion (USD281 million) in the same period a year earlier. Export revenue
declined 7.5 percent to USD2.2 billion during the period as prices plunged for
Mongolia’s main commodities, while expenditure and net lending increased 15.4
percent as government spending on roads and infrastructure rose.
Mongolia exported of copper increase 23.1 percent, but weaker prices caused the
value of copper exports to slip to USD916.7 million from USD1.15 billion. Coal
exports similarly rose 40 percent to 9.6 million tons while revenue fell 5.3 percent
because of price falls. Gold was a bright spot as these exports rose from four tons
to 7.1 tons, while export value rose 76 percent compared with the year-earlier
period.
Source: Bloomberg, Cover Mongolia
MONGOLIA STRENGTHENS TIES WITH SOUTH KOREA, A CREDIT POSITIVE
President Tsakhia Elbegdorj and Korea (Aa2 stable) President Park Geun-Hye
agreed to seek a bilateral economic partnership agreement (EPA). An EPA with
South Korea would be credit positive for Mongolia because it would boost bilateral
trade and investment between the two countries, offering opportunities for
Mongolia’s natural resource sector to move further up in terms of value added, and
lowering costs of imports from Korea. It would also diversify Mongolia’s external
economic relations, which are currently weighted largely toward China (Aa3
negative) and Russia (Ba1 negative).
Park’s state visit followed the three-day Asia-Europe Meeting Summit held in
Ulaanbaatar. During the visit, Park emphasized the need to build on the two
countries’ “complementary economic structures” through a trade agreement.
Although Korea’s advanced expertise in manufacturing technology would help it
tap into Mongolia’s abundant natural resources, a trade agreement would be
particularly beneficial for Mongolia.
Source: Moody’s Investors Service
CHINA AND MONGOLIA TO BUILD “WIDE-GAUGE” RAILWAY AT SHIVEE KHUREN
An international railway using a standard-gauge will be built joining connections
between Mongolia and China at the central southern border. China and Mongolia
have agreed to the railway project to join Mongolia’s Shivee Khuren and China’s
Ceke land ports in the hopes of boosting the movement of goods to 30 million tons
of freight for greater trade between between them as well as between China and
Russia.
Shivee Khuren is located at Umnugobi, Mongolia and is 40 kilometers from coal
miner SouthGobi Resources Ltd.
Source: Udriin Sonin
SMOKE FROM SIBERIA’S WILDFIRE COVERS MONGOLIA

7. Northern parts of Mongolia and the capital city, Ulaanbaatar, were blanketed in
smoke blown south from Siberian wildfires last week, putting health authorities on
alert. Smoke blew through Darkhan, Erdenet and Ulaanbaatar last week, with the
air quality index for Ulaanbaatar registering “very high” pollution at Bayanzurkh
and Bayangol districts, with the index ranging between 502 and 1007 of 2.5
microns of particulate matter (2.5PM) near the Wrestling Palace and Mongol Gazar.
The more centrally located districts, Sukhbaatar and Chingeltei recorded
“medium” pollution while the less crowded areas in Songinokhairkhan and Khan-
Uul recorded “low” air pollution content.
Health authorities warned advised to check the air quality of their neighborhoods
with the website agaar.mn and to keep their doors and windows closed. They also
recommended wearing proper face masks designed to filter out pollution rather
than dust and disposable masks, which have little effect on keeping out toxins
while breathing.
Source: Mongolia.GoGo.mn
U.S. HELPING MONGOLIANS TO MEET WINTER EMERGENCY CHALLENGE
The U.S. government is providing nearly USD800,000 in aid to help Mongolians
mitigate the effects of the 2015-2016 “dzud” winter emergency and develop
systems to increase disaster preparedness. This new funding is in addition to
USD150,000 in humanitarian assistance provided to support logistics operations and
the distribution of critical relief supplies to those affected by the winter
emergency and expands ongoing disaster preparedness training with province and
county-level officials.
Through the U.S. Agency for International Development’s Office of Foreign Disaster
Assistance (USAID/OFDA), the U.S. Government partners with Mercy Corps to work
with communities to recover from the impact of the winter emergency and support
the long-term sustainability of herding systems across 15 winter emergency-
affected provinces. The program will improve province and county-level ability to
manage risks and lessen the impact of future winter emergencies through disaster
risk reduction (DRR) training and the scale-up of a national SMS, or short message-
based information-sharing system.
Source: Montsame
PALAEONTOLOGISTS REPATRIATE DINOSAUR BONES WITH LASER BEAM
TECHNOLOGY
“We're trying to save dinosaurs,” said Phil Bell. He might sound like he's a few
million years late, but the paleontologist from the University of New England in
Armidale says his mission is no joke. "In the last 20 or so years there's been an
enormous explosion of black market dinosaur bones," Bell said.
Bell is about to leave for Mongolia as part of a very special project to repatriate
dinosaurs bones, which have been taken illegally from sites in the Gobi desert and
found in private collections or auction houses. He and his team plan to develop a
chemical map of the Gobi desert and match it with the chemical makeup of the

8. repatriated fossils to pinpoint where the bones have been removed from using
laser technology. Bell said the repatriation of fossils had led to some significant
discoveries, and enabled scientists to solve some mysteries and discover new
species.
Source: ABC
KOREA TO FUND MOBILE HEALTHCARE UNITS
A launch ceremony for a project introducing mobile technology for primary health
care was held on 26 July. South Korea’s International Health Fund provided
USD330,000 in financing to provide free health examinations to the 5,000
households living in Ulaanbaatar’s Songinokhairkhan District and Umnugobi Aimag,
where Mongolia’s valuable coal and copper deposits are located. The check ups
from doctors include tests for cholesterol and glucose levels in the blood, as well
as diagnoses for Hepatitis B and C, and more.
Project managers plant to expand the initiative to reach residents of Chingeltei
District and Nalaikh Soum, and 12 other provinces throughout the country.
Source: Unuudur
NOMADS OF MONGOLIA LAUNCH CAMPAIGN TO RAISE MONEY FOR ALTERNATIVE-
ENERGY TECH
An NGO called ILCHDIIN GAL has launched an Indiegogo campaign to raise money
for a program to provide electricity throughout rural Mongolia. The plan is to
protect the nature, continue the traditional lifestyle, and to ensure that the land
is properly looked after. “The traditional nomadic way of life of Mongols is
environmentally friendly” the creator explains, “Unfortunately the downside of
this lifestyle is no access to permanent electricity due to constant moving around.
Solar power has been used in the recent times but it does not generate enough
electricity to meet modern day needs.”
The plan is to develop a source of electricity for powering televisions, cell phones,
refrigerators and more with a generator fueled by the gases from manure. The
fertilizer produced from the machine can also be used to feed the livestock, also
helping mitigate issues surrounding the shortage of pasture land.
Source: Indiegogo, ILCHDIIN GAL
JICA LAUNCHES PROJECT FOR MONGOLIA’S DISABLED
Japan International Cooperation Agency (JICA) has launched a new project to
promote the social participation of people living with disabilities in Mongolia. The
project launched on 20 July, in partnership with the Ministry of Population
Development and Social Protection, with a detailed survey to be conducted among
people living with disabilities and a database with their information will be
established as part of the project.
Project initiators plan to determine the exact number of male and female
individuals of the 111,000 registered as living with disabilities living with
disabilities, as well as their ages, their ideal line of work, and other important

9. indexes as the Ministry of Population Development and Social Protection aims to
increase their employment by 2020. Many new facilities and developments have
been completed in Ulaanbaatar over the past four years to provide better
accommodations for people living with disabilities.
Source: UB Post
MONGOLIAN JUDGES LEARN ABOUT AMERICAN JUDICIAL SYSTEM
A handful of Mongolian judges want to take what they learned from the U.S. court
systems to their country. Three civil judges and a criminal judge from Mongolia
came to visit McAllen, Texas to observe the U.S. judicial system in action. They
said things are done different in the American court system. "All the ideas, all the
interesting observations we would share back at home with our colleagues, as well
we would work to introduce the best practices from here in our Mongolian system
of judiciary," Munkhtsetseg Chuluunbaatar, a Mongolian judge said.
Just like the Valley’s border, the Mongolian border has people who cross over
illegally.
Source: KRGV.com, The Monitor
TWO BUILDINGS FLAGGED FOR DEMOLITION IN UB
Demolition teams will tear down two buildings in Ulaanbaatar that authority say
were built without the proper permissions. Ulaanbaatar has 27 buildings flagged
for not having the correct permits, said the director of Ulaanbaatar’s Agency For
Specialized Inspection, L. Erdenechuluun.
Source: Unuudur
RAILWAY ACCIDENT OCCURS AT DARKHAN
A railway accident that occurred on a route through Darkhan caused MNT7.8
million in damages. A wheel was lost on the first wagon of a locomotive traveling
through the route between Darkhan stations one and two during a rain storm, said
Ulaanbaatar Railway’s (UBTZ’s) the vice director for labor safety and security, Ch.
Erdenchuluun. “The accident is related to heavy rainfall of continued two days,”
he said.
Erdenechuluun said the freight being carried on the train eventually reached its
destination. The accident is the third such incident in Mongolia, with the first two
occurring in 1984 and then 2006.
Source: Undesnii Shuudan
KOREAN WAVE GETS BOOST IN MONGOLIA
The Korean Wave has taken most parts of Asia…. and Mongolia is no exception. 18-
year-old Anukhatan is a self-confessed K-pop lover whose room is plastered with
posters of her favorite pop stars. "I wake up seeing their faces and it gives me
energy for the day."
The love among fans for K-pop and Korean dramas has also spurred a passion for
learning the Korean language, especially at Ulaanbaatar State University, located

10. in the heart of the capital. Students learn vocabulary and traditional folktales,
pick out new words and reenact some of the scenes. The demand for Korean-
language education has increased steadily in recent years, with about 20 Mongolian
universities now teaching Korean. Going forward, the two countries hope to
further expand their bilateral relationship through people-to-people exchanges and
potentially via economic cooperation by working together to develop renewable
energy resources and other projects.
Source: Arirang
UNIVERSITY GRADUATES SUFFER FROM LACK OF EMPLOYMENT OPPORTUNITIES
Finding employment is becoming more difficult in the still-deteriorating economy,
even for Mongolia’s educated. Unemployment among those able to work from 15
years old stood at 12 percent, according to the General Department for State
Registration and Statistics, with 65 percent of the unemployed having received
above a high-school education. Data shows that 63 percent of the unemployed are
between 20 and 39 years old with respondents explaining that they can no find any
work or work in their fields, or they lack training and education.
The majority of them employed work in either agriculture or manufacturing.
Source: Undesnii Shuudan
BANKHAR ARE BACK ON THE BEAT AS MONGOLIAN HERDERS
There’s a new khan in town. Scientists are working to re-establish a Mongolian
flock-guarding dog called the bankhar, whose powerful demeanor could be said to
be reminiscent of the Great Khan, Genghis, the famed and feared 13th-century
conqueror. Their goal? To not only protect the goats, sheep, horses, camels and
yaks belonging to Mongolia’s nomadic herders, but also to protect endangered
snow leopards and other predators such as wolves and bears from being shot,
trapped or poisoned for killing livestock.
“More often than not, the physical presence of the dog would be enough of a
deterrent to the predator,” says Greg Goodfellow, project scientist for the
Mongolian Bankhar Dog Project. “Predators might just view the cost-benefit ratio
as not significant enough and just move on.”
Source: Sacramento Bee
ADDRESSING THE WORLD - HOW TO FIND ANYWHERE ON THE PLANET
Last year, a brush fire threatened the home of Gankhuyag Chuluun Hutagt in
Ulaanbaatar. Instead of giving the fire brigade his address, though, Gankhuyag had
to guide them to the blaze by describing a series of landmarks along the way
because his house and many others do not have an address. But Gankhuyag, who is
on the board of the country’s post office, Mongol Post, proposes to do something
about it.
Thanks to his urging, Mongol Post is adopting a new system of addresses for the
country—and, indeed, in the world. Instead of street addresses or unwieldy co-
ordinates, this system divides the Earth’s surface into nine-metre-square blocks.

11. The system is also proving useful in the favelas of Rio de Janeiro, and rich
countries, too, can benefit. Not only are the words easy to memorize, type out and
communicate by phone, people might like the precision of directing others.
Source: Economist
HOT MONEY FLEEING NEGATIVE YIELDS SHELTERS IN MONGOLIA
Terrorism in France, Brexit in Britain, a coup in Turkey—political convulsions
everywhere. So where’s the hot money going? It’s going to the riskier markets such
as Mongolia, where at least investors are getting paid for the risks. These
unknowns in the developed world are only making the world’s biggest investors
more bullish on riskier markets. BlackRock Inc. is positioning for a “great
migration” into emerging nations by money managers fleeing negative rates. Since
Brexit, the yield on Mongolian dollar bonds maturing in December 2022 dropped
240 basis points to a one-year low of 7 percent.
“People are saying, well how actually is the U.K. shooting itself in the head
economically going to impact Mongolia?” said Jan Dehn, head of research at
Ashmore Group Plc, which manages USD51 billion of emerging-market assets. “The
big shift out of developed markets and into emerging markets hasn’t really
happened yet.”
Source: Bloomberg
POLITICS
WHO IS MONGOLIA’S NEW PRIME MINISTER?
Mongolia’s 29th prime minster is one of the country’s youngest at 41 years old. He
got his start as an accountant out of school and then civil servant at 22 years old
before becoming the governor of Selenge Aimag. Later he would serve as minister
of finance under his predecessor, Chimed Saikhanbileg. He has three siblings—an
older sister and two younger brothers—and is father to three children. His
elementary school classmate Tungalag later became his wife.
He has declared the ownership of three properties and shareholding in four
companies to the Independent Agency Against Corruption, as well as three vehicles
with a total value of MNT116 million.
Source: UB Post
MONGOLIAN PRESIDENT CLASHES WITH NEW PRIME MINISTER OVER CABINET
POSTS
Mongolian President Tsakhia Elbegdorj is already at loggerheads with the new
prime minister over cabinet appointments, raising the specter of further instability
as the economy slows and foreign investment declines. The dispute centers on the
prime minister's appointments of several officials that violate a presidential order
to avoid conflicts of interest by not giving ministerial posts to members of
parliament. “The new government: I can't say it's professional,” Elbegdorj wrote
on his official account on social media network Twitter, adding, “Money and power
trump the rules.”

12. Among the officials figuring in the clash are Tsedev Dashdorj, a former oil company
engineer appointed to oversee the mining industry, which attracts most of
Mongolia's foreign investment, and business tycoon and land developer Battogtokh
Choijilsuren. The posts for energy, health, food and agriculture and industry,
however, remained vacant amid concerns about conflicts of interest.
Source: Reuters
MP NOMTOIBAYAR APPOINTED TO 2 CABINET SEATS
Two of the empty posts in the Cabinet Secretariat have been filled by MP N.
Nomtoibayar. Prime Minister Jargaltulga Erdenebat’s picks for several posts has
risen some ire from President Tsakhia Elbegdorj and some observers for ignoring
the so-called “double deel” presidential order and less than exemplary
qualifications. Despite that, the cabinet appointed the elected the official
Nomtoibayar, who is already the minister of labor and social welfare, as acting
health minister.
Source: Mongolia.GoGo.mn
CABINET MEETINGS MOVED TO WEDNESDAY
Meetings of the Cabinet Secretariat, when laws are approved for debate for
Parliament and government initiatives are put forward, have been moved from
Monday to Wednesday. Each prime minister over the last several years has held the
meeting on different days, with Norov Altankhuyag (2012-2014) holding meetings
on Saturdays and Chimed Saikhanbileg’s (2014-2015) on Wednesdays.
Source: Udriin Sonin
PREMIER’S SPOKESPERSON APPOINTED
Prime Minister Jargaltulga Erdenebat has appointed Otgonbayar Gombojav as his
top spokesperson for the Cabinet Secretariat. Otgonbayar is a former engineer and
a journalist who worked as a columnist for the daily newspaper Udriin Sonin, as
head of service for Zuuny Medee and the first deputy director of Undesnii Shuudan.
He was also director of the public relations firm iToim.
Source: Montsame
STATE SECRETARY FOR PARLIAMENT APPOINTED
The Jargaltulga Erdenebat government has appointed Ts. Tsolmon as state
secretary of the Office of the Parliament. Tsolmon, 43, entered public service in
1993 as a computer operator at the Office of Parliament in 1993. He was a lecturer
at the Law School at National University of Mongolia from 1998 to 2001, and served
as the head of the Legal Policy Department of the Ministry of Justice and Internal
Affairs from 2004 to 2013. He also has five years of experience as an attorney.
Source: UB Post
ENKHBAYAR IGNORES ANTI-CORRUPTION AUTHORITY’S REQUESTS FOR
INTERVIEWS, SAY AUTHORITIES

13. Former president and prime minister Nambar Enkhbayar has ignored requests for
interviews, anti-corruption authorities have stated. The former elected official and
head of the Mongolian People’s Revolutionary Party served a year of a sentence for
corruption charges before receiving a presidential pardon in 2013. Now, authorities
say Enkhbayar has failed to appear at six scheduled meetings since February 2015,
reported the Independent Agency Against Corruption in a statement on its website.
“N. Enkhbayar has not come on the time when called on by legislative
organizations.”
Enkhbayar is being investigated for reported crimes against the U.S. citizen Alan
Ginsburg, taking in bribes, and connections to a case where MPRP member and
former health minister G. Shiilegdamba was arrested last winter.
Source: Unuudur
MPP TO TACKLE UB’S URBAN DEVELOPMENT CHALLENGES
The new government, now ruled by the Mongolian People’s Party, has promised not
to let the city fall into decay after years of improving air and soil pollution in the
urban sprawl. Parliament and the city officials agreed that Ulaanbaatar’s ger
districts raises the largest challenge for the transition of the capital into a modern-
day city with cleaner air. The city administration under Erdene Bat-Uul reduced
carbon emissions by 105.6 tons by relocating 615 families from gers and small
houses without links to city utilities such as heat and plumbing. Moving them into
apartments means less coal burned from these homes for warmth. In addition to
carbon, dust and sulfur content fell by 2.92 and 10.4 tons, respectively.
Currently, 34 companies are employing urbanization initiatives at 75 locations
throughout 24 so-called ger districts.
Source: Mongolia.GoGo.mn
ULAANBAATAR TO HOST NORTH-EAST ASIAN MAYORS FORUM
Ulaanbaatar will host the third Northeast Asian Mayors Forum from 3 to 5 August
with the overarching theme for the production and management of energy for
powering cities. Ulaanbaatar hosted the first forum in 2014, where participants
supported a development plan Ulaanbaatar to run through to 2030, in addition to
so-called mega projects that could have great impact on the Mongolian economy.
The second forum focused on implementing “green” city development.
Source: Mongolia.GoGo.mn
XYLOGRAPH ADDED AS UNESCO MEMORY OF THE WORLD
A Tibetan-Mongolian Glossary xylograph has been listed as a Memory of the World
by the UNESCO. The xylograph called Merged Garakhiin Oron (Towards Attaining
Wisdom) was created in 1924 at a religious school in Russia’s Buryatia, Republic.
Seven copies are preserved in the Museum of Rare and Precious Books of the
Mongolian National Library and others are kept in Tibetan book fund of the library.
The glossary was registered by the Government of Mongolia as a unique cultural
heritage in 2012.

14. Source: Montsame
BCM UPDATES:
UPCOMING EVENTS
JOIN BCM’S TRADE DELEGATION TO MINEXPO INTERNATIONAL 2016
The Business Council of Mongolia (BCM) is now registering members to join a Mongolian
business delegation for MINExpo International 2016 at the Las Vegas Convention Center on
26 to 28 September. The expo is the world's largest show of its kind and most
comprehensive exposition dedicated to mining equipment, products and services. More
than 1,800 exhibitors in twelve exhibit halls will display the latest technology, equipment,
components, parts and services for exploration, extraction, safety, environmental
remediation and more!
Attendees will learn about improving productivity, controlling costs, keeping operations
competitive, improving safety and managing risk with all the new equipment, services,
products and technology. There will also be plenty of opportunities to network and meet
industry leaders & experts for finding potential partners and suppliers.
BCM has partnered with the U.S. Embassy’s Commercial Section in Ulaanbaatar for the
event. The registration deadline is 29 July. Contact BCM at 70114442 or email
tugi@bcmongolia.org for registration or more information.
JOIN BCM’S DELEGATION TO GLOBAL GREEN GROWTH WEEK 2016
BCM in collaboration with the Global Green Growth Institute (GGGI), is now registering a
Mongolian business delegation to participate in Global Green Growth Week 2016
(GGGW2016), which will be organized at the Jeju International Convention Center,
Republic of Korea on 5-9 September 2016. GGGW2016 will engage high-level officials from
government, multi-lateral development banks and international development agencies,
private-sector leaders, and representatives from academia and non-governmental
organizations. Participants will assess green growth policy, research, partnerships,
financing, and technology through GGGW2016 policy dialogues, expert panels and
presentations, discussions, capacity building workshops, country-focused briefings, and
technology exhibits.
Why you should attend:
· See and experience the latest trends in Green Growth Technology from around the
world, especially in the Energy, Urban Infrastructure, Water and Land Use sectors.
· Engage with experts on the show floor and in education sessions to help you solve
the challenges you face daily and the ones you see on the horizon.
· Network and meet government and industry leaders & experts.
· Find potential partners & suppliers.
For more information about the event, please click here or contact BCM at 70114442,
99109887, bayarmaa@bcmongolia.org.
Registration deadline is August 13, 2016.
BCM ADVOCACY NOTES
"BCM Workshop & Advocacy Efforts on the New Corporate Income Tax (CIT) Draft Law"
As a follow-up action on BCM's position paper on the draft Corporate Income Tax law, on
24 May meeting was held with MP Amarjargal Rinchinnyam, who led the Working Group
established at the Parliament to oversee the drafting of the draft legislation. With other
private sector representatives present at the meeting, BCM has shared the concerns
identified in the position paper. Read more…

15. BCM WORKING GROUP NEWS
BCM’s Energy and Environment Working Group Meeting, 16 June 2016
BCM’s Energy and Environment Working Group meeting was held on 16 June 2016 with 3
speakers in roundtable experience sharing format.
Oyunbat Tumurkhuyag, Founder of Best Energy Savings LLC introduced vacuum heater,
vacuum steam boiler, smart socket and smart ger which were produced by Mongolian
engineers. MP Oyun discussed about the need to leapfrog from brown to green economy,
and suggested BCM to send an official letter to the Ministry of Environment, Green
Development and Tourism to get a full list of laws, policies and regulations that support
green development and provide incentive to private sector to go green. BCM will send this
official letter and share the received list to all members and post on BCM website. The
final speaker Solongo Khurelbaatar, (Former) Assistant Advisor for Asia-Oceania, Ramsar
Convention Secretariat shared her work experiences at RAMSAR convention. To see the full
meeting summary and upload presentations, please click here.
- Risk and Legislative Working Groups' Joint Meeting on the "DRAFT AMENDMENT OF THE
LAW ON DISASTER PROTECTION" 16 June 2016
- Business Ethics Working Group Meeting on “CSR, GIFTS AND HOSPITALITY POLICY”, 7 June
2016
- Education Working Group Meeting on “BCM SSUMMIT PROCEEDINGS”, 5 May 2016
- Capital Markets Working Group Meeting on “OYU TOLGOI UNDERGROUND PROJECT
FINANCING”, 5 April 2016
- Tax Working Group Meeting on “VAT LAW”, 2 March 2016
JOB VACANCIES AT MEMBER ORGANIZATIONS
- The U.S. Embassy is hiring Administrative clerk. Deadline for application: 5 pm
August 08, 2016. For more information: please click here
-The British Embassy is recruiting a Press & Public Affairs Assistant who will provide
general support to the Political & PPA section of the British Embassy. The chosen
candidate will play a key role in helping to upgrade the Embassy’s Facebook and Twitter
channels, including launching and delivery of Mongolian content.
Only short-listed candidates will be contacted, and the position is on a fixed-term basis
for six months. Click here to apply.
- Mercy Corps is hiring Director of Programs. Deadline for Application: August 10, 2016. For
more information: Please refer to website here
Please click here to view full list of Job Vacancies at member organizations.
MEMBER-TO-MEMBER SPECIAL OFFERS & BENEFITS:
- Orchuulga 24 is providing 15% discount on written translation services to BCM Members
- MNC HD TV offers BCM members 20% discount from the fee to be showcased in their “The
Story of Business/Бизнесийн түүх” TV program.
- American University of Mongolia is offering BCM members a 20% discount on all of ELI
Summer Courses.
- Matoza LLC is offering 15% special discount to BCM members on Intensive Business English
Language Course in Poland with a Sightseeing Trip.
Please click here to view full list of Member-to-Member special offers & Benefits.
WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS
PRESENTATIONS:
BCM Monthly Meeting, 30 May:

16. - B. Byambasaikhan, Chairman, BCM - “BCM Summit Proceedings”
- Ch. Mergen, Executive Director, BCM - "BCM Report"
- Anthony Woolley, Senior Associate, Hogan Lovells - “CIT Draft Law Update”
- D. Bat-Oktyabri, Director APAC, Techstars - “Start-up community in Mongolia”
- Michael Morrow, Executive Director, MACU & Ya. Enkhee, Owner & Partner at Gandan
Live House, Mexikhan & Guantanamera Restaurant - “It’s all about wine & cheese” event
- New Members Introduction
Please click here to view full list of Presentations.
MONGOLIA REPORTS:
- ADB, “Asian Development Outlook 2016: Asia’s Potential Growth” (forecasts of the next 2
years for the 45 economies in Asia and the Pacific including Mongolia)
- Invest Mongolia, “Your Guide to Invest in Mongolia” 2016
- BTI, “Mongolia Country Report” 2016
- World Bank, “Doing Business: Economic Profile of Mongolia 2016"
Please click here to view full list of Reports.
ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
Year 2008 *22.1% [source: NSOM]
Year 2009 *4.2% [source: NSOM]
Year 2010 *13.0% [source: NSOM]
Year 2011 *10.2% [source: NSOM]
Year 2012 *14.0% [source: NSOM]
Year 2013 *12.5% [source: NSOM]
Year 2014 *11.0% [source: NSOM]
May 31, 2016 *1.8% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 1.8% y-o-y; 3.2% Core - Ulaanbaatar City, May 31, 2016
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]
April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50% [source: Mongol Bank]
July 30, 2014 12.00% {source: Mongol Bank}
January 14, 2015 13.00% {source: Mongol Bank}
January 14, 2016 12.00% [source: Mongol Bank]

17. May 6, 2016 10.50% {source: Mongol Bank}
CURRENCY RATES – JULY 21, 2016
Currency Rate
U.S. dollar USD 2,068.43
Euro EUR 2,293.58
Japanese yen JPY 19.77
British pound GBP 2,729.09
Hong Kong dollar HKD 266.68
Chinese Yuan CNY 310.50
Russian Ruble RUB 31.38
SouthKorean won KRW 1.84